Instant, Fee- Free Bitcoin Payments: The Lightning Network Just Had Its ‘Pizza Transaction’

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A Lightning Network (LN) user reported that he or she has completed what may be the first transaction in which the LN was used to purchase physical goods.

The Lightning Network Just Had Its ‘Pizza Transaction’

On Saturday, Reddit user btc_throwaway1337 posted a picture of an AR300M VPN Router and revealed that he or she had purchased it from TorGuard using the LN mainnet.

Source: Reddit

As CCN reported, TorGuard began accepting LN payments for its VPN service earlier this month, even though LN software has not yet received its long-anticipated release and is currently only meant to be used on the testnet.

This pseudonymous Reddit user, though, contacted TorGuard customer support and asked if the company would accept LN payments for physical products, too. After receiving an affirmative reply, the customer purchased the router.

“I’m just your average BTC enthusiast, who had a bit of extra time last weekend,” the customer said. “It was all quick, easy, painless, and most importantly: instantaneous and fee-free!”

The user added that his or her payment channel had also been used to rout several transactions made by the small but growing number of mainnet LN users.

However, the user cautioned that because the LN is still officially in testing, anyone who uses it should realize that they could lose funds or encounter other bugs.

“Mainnet is still caveat emptor! I went down the rabbit hole fully willing to lose my BTC. I got lucky, others may not!,” the LN user said.

A Historic Moment for the Lightning Network

Nevertheless, the purchase is a historic moment for LN adoption, as it appears to represent the first time that an LN payment has been used to purchase a physical item. Many Reddit users compared it to the famous “pizza transaction,” which occurred on May 22, 2010, and represented the first time that bitcoins changed hands in a real-world transaction.

This LN pioneer, however, is not content with the comparison. As of press time, he or she was attempting to coordinate an actual LN pizza purchase.

“Rumor has it, I’m on LN mainnet. I will 100% pay for two pizzas if any of you can help facilitate the transaction. PM me!,” the user said.

Josiah is a former ancient and medieval literature teacher. He has been writing about cryptocurrency since 2014, and his work has been cited in Business Insider, NPR, and Yahoo! Finance. He lives in rural North Carolina with his wife and son. Email him directly at josiah.wilmoth(at)ccn.com.